Lim Seong Hai Capital Bhd (LSH Capital) is set to significantly bolster its presence in the property development and construction sectors through the proposed acquisition of three prime land parcels in Titiwangsa, Kuala Lumpur (KL), marking a strategic move that paves the way for a new mixed-use residential project.
In a bourse filing on May 30, LSH Capital said the acquisitions, collectively valued at RM17.4 million, will be via its wholly owned subsidiary Lim Seong Hai Development Sdn Bhd. The acquisitions will be fully financed through internally generated funds, underscoring the company’s strong liquidity and disciplined capital management.
LSH Development intends to amalgamate all three parcels and submit a comprehensive development order to the KL City Hall for approval to develop a high-rise property development project comprising approximately 240 units of serviced apartments, strategically located in the heart of the city.
The proposed development is projected to carry a gross development value (GDV) of RM130 million. Subject to necessary approvals, construction is scheduled to begin in 2027 and reach completion by 2030.
In a vertically integrated strategy, the LSH Capital is expected to be appointed as the design and build contractor for the project, which has an estimated gross development cost of RM103.1 million. The development will be funded through a combination of internally generated funds, bank borrowings and proceeds from unit sales.
This strategic land acquisition and subsequent development represent a key milestone in LSH Capital’s broader growth trajectory as the company expects the proposed development to significantly expand its construction portfolio, strengthen its earnings base through construction revenue and property sales, and enhance cash flow visibility through a robust construction pipeline.
With this addition, LSH Capital’s total property development GDV will rise to RM1.68 billion, extending earnings visibility through 2029.
Furthermore, the Titiwangsa project is anticipated to contribute to an enlarged secured construction orderbook of RM2.09 billion, with an overall outstanding orderbook of RM1.54 billion, a vital platform for sustained growth.
The proposed acquisitions not only reinforce LSH Capital’s presence in KL’s booming real estate market but also position the company to bid for and execute larger-scale construction projects, elevating its profile in Malaysia’s competitive construction and property sectors.
Barring unforeseen circumstances and pending regulatory approvals, the acquisitions are expected to be completed by the second half of 2025.
